HomeMy WebLinkAboutresolution.council.018-72RECORD OF PROCEEDINGS
100 Leaves
No. /Y
(Series of 1972)
WHEREAS, under the provisions of the Charter of the
City of Aspen, adopted pursuant to the 20th Amendment of the
Constitution of the State of Colorado establishing home rule,
there is specific authorization requiring the service of
electric energy to the residents of the City of Aspen by its
municipally owned electric distribution department; and
WHEREAS, for a number of months efforts have been
undertaken to obtain the electric facilities of the Holy Cross
Rural Electric Association that are located within the boundar-
ies of the City of Aspen and are presently being used to serve
residents of the municipality; and
WHEREAS, a consulting engineering firm, Merrick &
Company of Denver, has been employed to investigate the
acquisition of said electric facilities of said Holy Cross
and has now reported the results of its investigation to the
Council; and
WHEREAS, the investigation and recommendations of
said consulting engineering firm have arrived at a value in
excess of the net book cost value of said plant that is
frequently used elsewhere in the State of Colorado in the
acquisition by mutual consent of facilities of rural electric
associations by municipalities who desire to acquire said
facilities within the boundaries of said towns and cities;
and
WHEREAS, said Merrick & Company has investigated
and determined that there is a method of acquisition of
facilities that will enable the Holy Cross Rural Electric
Association to continue to serve its consumers outside the
boundaries of said municipality without damage to said
association and consumers so located; and
WHEREAS, the maximum value that Merrick & Company
has recommended for the compensation of all sums due in the
RECORD OF PROCEEDINGS
100 Leaves
acquisition of said facilities of Holy Cross, including the
damages, if any, for said facilities or services outside the
City of Aspen is in the amount of $336,679.26; and
WHEREAS, the negotiations to date have been unable
to arrive at a mutually satisfactory determination of compen-
sation; and
WHEREAS, it is necessary in the discharge of its
duties to provide electric service under the Charter of Aspen,
and it is determined by the City Council to be in the best
interests of the City of Aspen that said municipality acquire
the facilities of Holy Cross Rural Electric Association under
the proposal of Merrick & Company and under the authority of
the statutes of the State of Colorado,
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Aspen:
1. That the acquisition is in the best interest of
Aspen.
2. That the City Manager and City Attorney, to-
gether with special counsel and the consulting engineer
e~loyed by the City Council are hereby authorized and directed
to negotiate to acquire said facilities from the Holy Cross
Rural Electric Association for a sum not to exceed $336,679°26,
which sum is thought to be in excess of market value of said
facilities, but which sum would be the maximum which the City
Council believes can and should be paid Holy Cross Rural
Electric Association without court determination of any other
value.
3. That if said negotiations cannot arrive at a
mutually satisfactory determination of value within forty-five
(45) days, or in the event that an impasse in said negotiations
occurs, then said City Manager, City Attorney and special
counsel are authorized and directed to institute condemnation
proceedings to acquire the facilities of Holy Cross Rural
Electric Association, pursuant to the recommendation of
-2-
RECORD OF PROCEEDINGS
100 Leaves
Merrick & Company, by instituting proceedings in
Court of Pitkin County,
necessary or desirable
4. That the
the District
and to take such additional steps
in connection with said acquisition.
City Manager, City Attorney and
special counsel are authorized to take such steps as they
may determine necessary and desirable, pursuant to the
directions and authority above stated.
Dated this ~day of September, 1972.
YOR
I, LORRAINE GRAVES, duly appointed City Clerk of
the City of Aspen, Colorado, do hereby certify that the fore-
going is a true and correct copy of the Resolution adopted
by ~t A~spe~n City Council at the regular meeting he id on
c~o-~ , 1972.
-3-